In the latest episode of Money Metals Midweek Memo, host Mike Maharrey delves into the Federal Reserve's ever-changing stance on inflation, the reality behind rising consumer prices, and a seemingly unrelated but important development: the end of the US penny.
Through sharp analysis and historical comparisons, Maharrey explains why the government's monetary policy continues to erode the value of the dollar while reinforcing the importance of holding physical gold and silver.
Maharrey begins with a reference to Monty Python's famous Dead Parrot sketch, drawing a humorous but revealing analogy between the Federal Reserve's handling of inflation and the pet shop owner's refusal to admit that the bird was dead.
He notes that in 2022, Federal Reserve Chair Jerome Powell and other officials insisted that inflation was “transitory.” However, when consumer prices rose beyond expectations, the Federal Reserve was forced to change its tune. By mid-2023, officials hinted that inflation had been “overcome,” and markets reacted optimistically.
However, Maharrey reminds listeners that he repeatedly warned against this overly optimistic view, arguing that the Federal Reserve never did enough to fully contain inflation. As recent CPI (Consumer Price Index) data shows, inflation remains persistently high, proving that the supposed victory over rising prices was, itself, transitory.
Breaking down the CPI: price increases are hard to ignore
Reviewing the latest inflation data, Maharrey highlights several key figures from the December 2024 and January 2025 CPI reports:
Annual inflation rate (January 2025): 3.0%